India Cements CEO N Srinivasan Resigns Following Rs 7,000 Crore UltraTech Deal

New Delhi: N Srinivasan, the long-time Chief Executive Officer (CEO) and Managing Director (MD) of India Cements, has stepped down from his position days after the Competition Commission of India (CCI) approved a massive Rs 7,000 crore deal between India Cements and UltraTech Cement. Notably after the signing of the deal, billionaire Kumar Mangalam Birla-promoted UltraTech Cement will acquire a majority stake in India Cements Ltd.

In a regulatory filing, India Cements announced that its erstwhile promoters and promoter group, including N Srinivasan, would cease to be promoters or members of the promoter group. This decision is a direct result of the acquisition deal with UltraTech Cement.

"The erstwhile promoters and members of the promoter group, namely Mr. N. Srinivasan, Mrs. Chitra Srinivasan, Mrs. Rupa Gurunath, EVVS Finance & Investments Private Limited, Mr. S.K. Asokh Baalaje, Financial Service Trust, Security Services Trust and Chennai Super Kings Cricket Limited (collectively, 'Erstwhile Promoters'), who no longer hold any equity shares of the Company, cease to be promoters/members of the promoter group of the company," the company said.

Srinivasan's resignation letter stated that he would be stepping down as Vice Chairman, Managing Director, Director, and CEO of India Cements, effective immediately. He also ceased to be the promoter of the company.

In a resignation letter, Srinivasan wrote, "Consequent to the divestment of my entire shareholdings in The India Cements Limited ('ICL'), as one of the 'Promoters' of ICL with UltraTech Cement Limited ('Acquirer') and in terms of the Share Purchase Agreement dated 28.07.2024 entered with the Acquirer, I, N. Srinivasan (DIN: 00116726), hereby tender my resignation as Vice Chairman & Managing Director, Director and Chief Executive Officer (KMP) of The India Cements Limited with immediate effect. I also cease to be the Promoter of The India Cements Limited with immediate effect."

The CCI approved UltraTech Cement's acquisition of a 32.72% stake in India Cements from the promoters and members of the promoter group. Additionally, UltraTech Cement will acquire up to 26% of India Cements' paid-up equity share capital via an open offer.

UltraTech Cement, a subsidiary of Grasim Industries Limited, is engaged in the manufacture and sale of grey cement, white cement, ready-mix concrete, clinker, and building products. India Cements, on the other hand, operates both core and non-core businesses, with its core business being the manufacture and sale of grey cement and ready-mix concrete.